[1mm Financial Talk] "Insurance Association President Needs Government Background Over Expertise"

Bureaucrat Choi Seon-ho Preferred... Politician Origin Comes Last

Attention is focused on the election of the next chairman of the Life Insurance and Non-Life Insurance Associations, whose terms end at the end of the year. Various figures such as industry experts, bureaucrats, and politicians are being mentioned, but the industry generally prefers bureaucrats. This is because, in the conservative financial regulatory industry, the chairman's ability to liaise with government authorities is considered most essential.

According to the industry on the 1st, the terms of Jeong Hee-su, chairman of the Life Insurance Association, and Jeong Ji-won, chairman of the Non-Life Insurance Association, will end on December 8 and 22, respectively. Various candidates have already been mentioned for the next chairman. For the successor to the Life Insurance Association chairman, Sung Dae-gyu, chairman of the board at Shinhan Life Insurance, Lim Seung-tae, CEO of KDB Life Insurance, former lawmaker Yoon Jin-sik, and former Financial Supervisory Service chief Jeong Eun-bo have been floated as potential candidates.

The industry shows a preference for Chairman Sung, a former bureaucrat. He passed the 33rd Administrative Examination, served as a standing member of the Financial Services Commission, and later held positions as president of the Insurance Development Institute and CEO of Shinhan Life. He is considered a suitable candidate because he understands the industry's position and the government's perspective. Similarly, CEO Lim, who also served at the Ministry of Strategy and Finance and the Financial Services Commission, is competitive in the same context.

On the other hand, there is reluctance toward candidates from political backgrounds. This is because they are not expected to have much expertise or serve effectively as a communication channel with government authorities. In fact, former lawmaker Yoon, who was recently mentioned as a candidate, faced parachute appointment controversies when he challenged for the KT CEO position in July. Although he served as head of the Financial Policy Division at the Ministry of Finance, commissioner of the Korea Customs Service, deputy minister of the Ministry of Strategy and Finance, minister of the Ministry of Commerce, Industry and Energy, and economic advisor to President Yoon Seok-yeol, he has little connection with the insurance industry. An insurance industry official said, "The insurance industry should not become a place to drop in lawmakers without positions or political cronies," adding, "It has been a feast for those who lost their positions, causing many issues such as neglecting employment screening procedures."

Private sector figures such as insurance company CEOs are also not warmly welcomed if they lack bureaucratic experience. Since the association is funded by insurance company dues, the industry's voice can be reflected even without private sector leaders, so liaison capabilities are the top priority. This is why Yoo Kwang-yeol, CEO of SGI Seoul Guarantee Insurance and former senior deputy governor of the Financial Supervisory Service, is attracting attention as a successor to the Non-Life Insurance Association chairman. Furthermore, there is even an opinion that former Financial Supervisory Service chief Jeong Eun-bo, who is mentioned as a candidate for the chairman of the Korea Federation of Banks, should take the helm of the Insurance Association. Jeong served as head of the Insurance System Division at the Ministry of Strategy and Finance in 2005 and currently serves as an advisor to the Korea Insurance Research Institute. An industry insider explained, "There is considerable reaction that former Jeong would be the best choice because he guarantees liaison capabilities as a former Ministry of Strategy and Finance official and financial authority chief, and also has substantial industry knowledge."